Warehouse Loans & Forward-Flows

3Jane offers two facility structures. Both are the predominant forms of non-dilutive financing that banks and credit funds use to help fintech lenders scale their loan portfolios. Both have had little to no prior history in DeFi.

Two facility structures: warehouse loans (revolving credit against a pledged portfolio) and forward-flow programs (whole-loan purchases on a forward calendar).

• Warehouse loans — a revolving credit line advanced against the fintech lender's own pooled portfolio of loans, segregated in an SPV. 3Jane holds a senior secured position; the originator keeps the first-loss equity beneath it.

• Forward-flow programs — whole-loan purchases of receivables that meet predefined eligibility criteria. 3Jane buys the loans outright into a purchaser SPV on a true-sale basis.

ELI5: a warehouse loan

A warehouse loan is the lowest-lift way for a fintech lender to scale its book without raising more equity.

Using a Klarna-style "burrito" example:

1. Klarna wants to fund a $4 burrito order on DoorDash. It has $1 of equity from a VC.

2. A lender (3Jane) advances Klarna $3 against the receivable, at a 75% advance rate.

3. Klarna funds the $4 order, pledges the receivable as collateral, and keeps the first-loss slice (the bottom $1).

4. The consumer repays Klarna in installments. Klarna repays the lender, who earns interest. Klarna earns the economics on $4 of loans while tying up only $1 of equity.

5. The same dollar of equity now funds 4x the loans. Repeat across millions of receivables.

ELI5: a forward-flow

A forward-flow is the next funding rail an originator graduates into once a warehouse can't scale fast enough.

Continuing the burrito example:

1. Klarna has originated $4 of burrito loans, proved performance, and wants to scale to $10 of orders.

2. Doing that through a warehouse would require Klarna to raise more equity to fund the next first-loss slice — extremely dilutive.

3. A credit fund (3Jane) offers to buy the next $10 of receivables outright for $9.85 — a 1.5% purchase discount, whole-loan sale. The buyer earns a double-digit IRR off the embedded yield; Klarna gets capital that never touches its balance sheet.

4. Klarna originates the next batch, sells it on a forward calendar (e.g. weekly takedown), keeps the origination + servicing fee, and recycles all of its capital.

It's the obligors paying, not the originator

In both structures, the cash flows reaching the senior position are contractual obligations from named end-borrowers — the consumers and small businesses behind the receivables — not the operating cash flows of the originator itself. Cash flows are ring-fenced through SPV-level collateral mechanics: a warehouse is secured against eligible receivables held in an originator SPV, while a forward-flow purchases eligible receivables into the buyer SPV on a true-sale basis. See Legal Structuring.

	Warehouse loan	Forward-flow
3Jane's position	Senior secured lender / noteholder	Owner of the purchased loans
Loan ownership	Originator SPV holds receivables; 3Jane holds a perfected first-priority lien	Beneficial ownership transfers to the purchaser SPV at purchase (true-sale)
Key sizing metric	Advance rate against the eligible borrowing base	Purchase discount / commitment
Originator skin-in-the-game	First-loss equity beneath 3Jane	Origination & servicing fee; reps & warranties / repurchase
Capital recycling	Revolving period, then amortization	Forward-calendar takedowns

Continue to Credit Enhancement & Loss Distribution.